NSE Symbol: BANKBARODA | BSE Code: 532134
Bank of Baroda (BOB) Share Price Performance
Bank of Baroda Stock Trends in 2018
In January 2018, the Bank of Baroda share price opened at Rs.161.90. There were no discernible gains in January, but it took a sharp hit in February for turbulence in the international markets and dropped below Rs.150, closing at Rs.141.95 on February 28.
Over the next two months, the BoB share price remained below Rs.150, without incurring any sharp losses during this period. It dropped further in May and fluctuated between Rs.130 to Rs.145.
In June, the shares lost around 15% and dropped below Rs.110 and reached its 52-week low of Rs.109.50 in early July.
In the last of week of July, the BoB share price rose again to their previous levels at Rs.150 and the shares were traded at around Rs.145 in September 2018.
Bank of Baroda Stock Trends in 2017
The first quarter of 2017 had many noticeable events like the change in directorship, announced in January. A modification in the management influences the share price. Thus, the equities of Bank of Baroda, which started trading at Rs.148.90 in January, rose to Rs,172.75 by the end of March.
However, the BoB share price fell to Rs.172.40 in April and further decreased to Rs.161.65 by the end of June 2017. This drop was mainly due to poor fundamentals and profits were also low during the same period.
In the first week of July, the bank’s stocks were traded at Rs.160, which increased by Rs.6 towards the end of the month but again slipped down to Rs.160 at the beginning of August. It further dropped to below Rs.140 in September and closed the quarter at Rs.137.60.
After the continuous drop in stock prices over the last two months, the BOB share price gained again in the first week of October when it shot up to around Rs.170. However, by the end of 2017, the share prices were at Rs.161 approximately.
Bank of Baroda Stock Trends in 2016
The Bank of Baroda stock price in the first week of January was approximately Rs.159, which dropped to Rs.125 by the end of the month. After slight fluctuations, the share prices stood at Rs.147 when the quarter closed in March.
The stock value fluctuated between Rs.143.40 and Rs.157.90 in April 2016, and between Rs.148.70 and Rs.138.40 respectively in May. An upward trend was noticed in June.
The share prices continued to grow in July 2016 as the opening stock price was Rs.156.60. In August, the opening price came down to Rs.147.50 but increased to Rs.164.15. In September, the share price of Bank of Baroda rose to Rs.175 but slid down to Rs.167.40 by the end of the month.
The October-December quarter of 2016 witnessed the Bank of Baroda share price fluctuate between Rs.169.85and Rs.153.40.
Bank of Baroda (BOB) Company Information and Brief History
Bank of Baroda is an Indian banking company which offers a wide range of international banking solutions and financial services for personal, corporate and retail customers. The bank has its headquarters in Vadodara, in Gujarat and its corporate office is located in Mumbai. Bank of Baroda is the second largest Indian bank in terms of assets. Based on the data accumulated in 2017, it is ranked 1145 on the Forbes Global 2000 list. The bank has total assets of over â‚¹ 3.58 trillion, a huge network of more than five thousand branches in India and abroad, and more than ten thousand ATMs. Bank of Baroda was established on 20th July 1908 by the Maharaja of Baroda called Maharaja Sayajirao Gaekwad III. It was nationalized on 19th July 1969, by the Indian Government. It is a profit-making public sector undertaking. At least 10 banks have merged with Bank of Baroda during its century-long journey so far. The market capitalization of Bank of Baroda in March 2018 was Rs.30347.76 crore. BOB share price fluctuates at every moment and thus it is very important for all potential investors to keenly study the performance of the company’s shares before investing in it.
Bank of Baroda - Timeline
Bank of Baroda was conceptualized by the Maharaja of Baroda in July 1908 in Baroda and nationalized later in 1969. Here are the notable timestamps in the bank's journey so far:
The Baroda opened branches in Kampala and Mombasa in 1953.
It opened its second branch in Kenya in 1954.
The bank extended its operations to London in 1957.
Hind Bank Limited got merged with Bank of Baroda in 1958.
New Citizen Bank of India got merged with Bank of Baroda in 1961.
Surat Banking Corporation got merged with Bank of Baroda in 1963.
Tamil Nadu Central Bank and Umergaon People Bank got merged with Bank of Baroda in 1964.
Traders Bank Limited got merged with Bank of Baroda in 1988.
Bareilly Corporations Bank Limited got merged with Bank of Baroda in 1998.
Benares State Bank Limited got merged with Bank of Baroda in 2002.
South Gujarat Local Area Bank Limited got merged with Bank of Baroda in 2004.
Memon Cooperative Bank Limited got merged with Bank of Baroda in 2011.
Wealth and Recent Performance
Q1 FY 2018-19
For the quarter ending in June 2018, Bank of Baroda reported its total income at Rs.12787.7 cr. Compared to the same quarter in the preceding financial year, an increase of around Rs.700 crore can be observed.
The net interest income of Bank of Baroda increased by 28.7% y-o-y to Rs.4381 cr.
Provisions for bad loans dropped by 18% y-o-y to Rs.1759.7 cr, which resulted in the public lender's report of better-than-expected profits for this quarter.
The net profit after tax for this period was reported to be around Rs.528.2 cr, which was an improvement by more than 150% y-o-y. This was indeed a splendid report as compared to the company's performance in the March quarter when it had suffered a loss of Rs.3100 cr.
Considering the bank's asset quality, its gross NPA in this quarter was 12.46% as compared to 11.40% in the same quarter of the preceding year. Its net NPA also grew marginally from 5.17% to 5.40%.
In the previous financial year (2017 - 2018), Bank of Baroda had reported its total income as Rs.50305 cr as against Rs.48957 cr reported for its previous year.
However, the bank's profitability took a major hit owing to bad loans. The provisions for stressed loans in FY 2017-18 were reported at Rs.14211 cr as against Rs.7680 cr reported in the previous year.
Due to this increase in provisions, the lender suffered a loss of Rs.2431.8 cr.
In FY 2017-18, Bank of Baroda reported the gross NPA at 12.26%, as compared to 10.46% in the previous year. A similar increase was also noticed in the net NPA, with a rise from 4.72% to 5.49% y-o-y.
Q3 FY 2017-18
Bank of Baroda, being a public sector lender, reported a drop in its net profit margin by 56% at Rs.112 cr for the third quarter of FY 2017-18. The net profit in the third quarter of the previous financial year was Rs.253 crore.
In the third quarter of FY 2017-18, the bank's overall income accelerated by 6.53% over Rs.12181 cr, which was reported during the same quarter of the previous financial year.
Bank of Baroda registered a 40.2% increase in the net interest income, and by the end of the third quarter, the NPA had touched 11.31% of the gross advances.
During the same period, the net NPAs dropped to 4.97% of the net advances. The NPA provisioning coverage ratio was at 68.03%. The bad loan provisions were up by 92.61%.
The total advances of Bank of Baroda increased by 14.12% and the net interest margin increased by 2.72% in the same quarter. The return on assets dropped to 0.07% from 0.21%.
Is Investing in Bank of Baroda Stocks a Good Idea?
Bank of Baroda is a notable public-sector baking entity. Unquestionably, it is one of the best possibilities for stock investors. If we study the stock performance of over the last 2-3 years, the stock did not go steady. Although there was a positive trend and for some time, it was soon replaced by a declining trend. Whether or not one wants to hold the stocks of Bank of Baroda is completely based on a close study as well as fundamental and technical analysis. Since the net profit of Bank of Baroda has been consistent over the last couple of years, one may choose to invest in these stocks for a long-term. It is better for all investors to monitor the Bank of Baroda share price for a considerable period before deciding to invest in it.